reno-or at least try to...
If your neighborhood doesn’t look like post-war Bosnia, wait for it. Renovation season is just starting to kick into high gear across Canada. And it’s coming soon to a street near you.
The latest survey from Ipsos-Reid indicates that 65 per cent of Canadian homeowners have plans to renovate their domiciles over the next 12 months. About 28 per cent of that lot, plan to spend at least $5,000 on the job.
What are the upgrades and improvements that are top of mind? About 37 per cent want to fix up their bathroom with kitchens a close second at 35 per cent. After that, it’s all about gardens, basements, family rooms or bedrooms.
But if you’re among those with an eye on improvements and you didn’t develop a plan and hire a renovator late last year or in the first couple of months of this year, you may find it tough to find help. These days, most renovators are booked for several months in advance.
The excess of demand over supply is also affecting costs all around. Contractors are compelled to pay top dollar to get trades people across your threshold and, at the same time, the cost of supplies is soaring as well.
Part of the reason for all this activity is that a growing number of people are reluctant to move away from areas where they are already well-established. Familiar neighborhood streets and schools appear to have become increasingly important at a time of rapid and perpetual upheaval.
Before you even make a single phone call or choose the first tile, there are several critical factors to avoiding a renovation nightmare:
1. Really know who you’re dealing with. Ask for several references from the individual’s most recent jobs (at least three) and really check it out with the people who’ve previously had work done. Also make sure you check the company or individual’s credentials with the local building trade association.
2. Don’t automatically take the lowest bid, but do ask various bidders to explain in detail, the reason for the price discrepancies. Whatever you do, don’t try to save money by paying cash or paying under the table. If something goes wrong, you don’t have the same legal recourse because you’re unlikely to have a contract-let alone the detailed legal document you should have. Chances are that an under-the-table operator may not have either his work or his workers properly insured in case of accident or other mishaps-and you could be liable if something goes wrong.
3. Make sure to withhold 10 per cent of the total contract price in case supplier or sub-contractors are unpaid at the end of the project. The withholding period is usually 30 to 45 days after completion of the job.
4. Even if you’re anxious to get someone to undertake the job, don’t think that a signing bonus is required. The absolute maximum deposit you should consider upon agreeing to proceed, is 10 to 20 per cent of the total contract price.
5. Be meticulous about local building regulations and zoning by-laws before going ahead. Also ensure that as a courtesy-and a way to avoid potential conflict-you inform the neighbors of what you are doing, how long it will take and what it will mean to their quality of life. Be sure to leave them a number at which they can reach you or the contractor at all times in case of problems.
6. Check in with your home insurance provider to clarify what is covered during the renovation process. Some policies, for example, don’t cover the theft of uninstalled building materials and supplies if you’ve moved out of the house. Also remember to increase your insurance coverage if a project materially affects the value of your house or its features. You just might want a bit of extra coverage if you’ve installed a Jacuzzi in your attic.
7. Have a game plan. Make sure you give workers enough room to do the job and, in many cases, that means moving out altogether. A lot of trades prefer to work-and work much more efficiently-when they don’t have to step around you and your dog to get the job done. If you do plan to live through the work, manage expectations in detail on both sides. Agree what bathrooms are to be used by workers, their access to telephones and other resources well in advance.
8. Exert some discipline. The cost and length of time of a renovation are very often increased dramatically by last minute, what-the-heck changes. Once things are underway, it’s human nature to start second guessing and adding this or that detail or upgrade. Think strategically at the same time, with at least a half eye on the potential return on investment in the event of a re-sale down the road. (A well-done kitchen, for example, can yield as much as a 200 per cent return according to the Appraisal Institute of Canada. The return on backyard pools and spas, by contrast, is negligible.)
9. Before you sign off on a contract, walk through the area with the contractor and go through every detail of the work done. Keep a careful note of all the small finishing touches that may not yet be complete, such as missing baseboards and switch plates. If you don’t catch all the little items before workers de-camp, it’s likely going to be very hard to get them to come back for these tweaks.
10. Even if you move out during renovations, don’t disappear and expect the contractor to read your mind in absentia. Constant, clear communication is the best way to avoid a disaster before it happens.
